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We have made solid progress in key reforms. We formulated and implemented a coordinated plan for deepening the reform of the fiscal and tax systems. Important progress was made in the reform of the budgetary management and tax systems. The number of items receiving special transfer payments was over one third less than that of the previous year, and the proportion of transfer payments for general purposes was increased. Management of local government debt was strengthened. The floating ranges of interest rates on deposits and exchange rates were expanded. New steps were taken in the trials to establish private banks. The Shanghai-Hong Kong Stock Connect was launched on a trial basis. The scope for using foreign exchange reserves and insurance funds was broadened. Price reforms in energy, transport, environmental protection, and communications were accelerated. We launched reforms to the system for managing research and development funding, the school examination and enrollment systems, the household registration system, and the pension system for employees of Party and government offices and public institutions.

Germany and China each have their own strengths in the field of digital economy and the two countries can complement each other through cooperation in this regard, Merkel said.

"China welcomes foreign investors," Li stressed.

Xi made the remarks while speaking with lawmakers from east China's Shanghai in a panel discussion on the government work report delivered by Premier Li Keqiang.

The Hong Kong Special Administrative Region (HKSAR) and Taiwan were also a focus at Wednesday's meeting.